Re: How to Protect our Option and Avoid Seller Monkeying Around with my Buyers - Posted by B.L.Renfrow
Posted by B.L.Renfrow on March 24, 2000 at 12:34:48:
I think her comment about bringing a buyer to the table was speaking figuratively, in the context of the closing table, not the seller’s kitchen table!
Of course, you are technically correct, but it is not reasonable to assume that Monique’s buyer is going to purchase the option without examining the property. Naturally, the buyer is going to want to look it over before they agree to anything. In the ideal world, any property I have an option on is vacant. However, it doesn’t always work out that way. In some cases, I may ask the seller to leave when I bring a potential buyer around. In others, depending on the people and circumstances involved, I feel the sellers will do a better job than I can of “selling” the property, since they know it better, so I don’t care if they are present.
Yes, Monique, it IS a risk, albeit small, that the seller might try to cut you out of the deal. BUT…your risk can be reduced by using either of the methods discussed below (memorandum of option or performance mortgage). Furthermore, the vast majority of sellers have no idea how to actually pull off the deal even if they wanted to. If I’m taking an option on a property, I usually will then offer it with seller financing with the intention of creating a note, which I will sell at closing. Believe me, there’s not one seller in 10,000 who would know how to do that. Before they ever call me, they’ve probably already tried, without success, to sell it the usual way. The reason I can find a buyer, while they, or their RE agent cannot, is because I will offer something they can’t or won’t: seller financing.
The bottom line here is that if someone really makes an effort to screw you, it probably can be done, but if Monique takes a few simple steps to protect her interest, I don’t think she has a lot to worry about.